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Idox lowers FY earnings expectations; appoints new CEO

By BFN News | 09:59 AM | Tuesday 29 May, 2018


Specialist information management solutions and services supplier Idox suspended its interim dividend after lowering its expectations for the year and reporting increased cash costs during the first half of the year. The group also announced the appointment Tuesday of a new Chief Executive, David Meaden. Meaden is expected to join the group as CEO on 1 June. Full year adjusted earnings (Ebitda) is expected to be in the range of £13m to £15m weighed by a reduction £5 hit from the company's digital division, compared to current market expectations of around £22.8m. However, the underlying performance excluding the discontinued digital division is expected to be in the range of £18m to £20m. The half-year adjusted earnings (Ebitda) was roughly £1m, down from £10.3m the same period a year ago. Underlying operating performance in the majority of the group, including public sector and health, had been as expected amid good delivery of cost savings and solid order intake, the company said. Idox said it had integrated the strongest parts of the digital division - focussed on digital delivery of the group's core local government solutions - into the public sector business. While the weaker part of the digital division - focussed on lower margin and highly competitive contracts in the private sector - would be closed. Following the actions taken, the company added that it expected performance to improve in the second half of the year. At 9:59am: (LON:IDOX) Idox Plc share price was -6p at 33.15p Story provided by StockMarketWire.com

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